Tax [Cringe!]

[atlanticjim]

Nassau County NY: 8.625%
New York City: 9%
Suffolk County: 8.75%

Actually in Suffolk it is 8.625% combined State and County sales tax. Payable periodically to the state and they forward the appropriate revenue to the county.
Here all sales and services are taxable, unless they have a tax-exempt certificate (such as a non-profit organization e.g. church.)

 

[allanc]

I feel quite blessed to live and do business in a country that has a simple 10% tax rate, applicable to everything a computer retailer is likely do, and all retail prices are quoted inclusive of GST.

In trying to internationalize ShopManager as much as possible, I come as I inevitably must to the issue of Taxation.

What I would like to know, is how your Country/State calculates it's tax. The following information would be most appreciated

• Country/State
• Tax Rate(s)
• Prices Tax Inclusive, or Tax added
• Anything else that is applicable to your country/state.

The day the globe goes to a universal currency and tax system will be the happiest day of my life!

I am not from Quebec, Canada ... but they have tax on tax.
See this link:
http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

 

[Robert]

Does anyone's localities use Compound Taxes (i.e. tax on total invoice, then a 2nd tax on the invoice including the 1st tax)?

I'm getting somewhere with multiple taxes, but will avoid compound taxes if no-one needs them (which I have a horrible feeling someone will...)

 

[allanc]

Does anyone's localities use Compound Taxes (i.e. tax on total invoice, then a 2nd tax on the invoice including the 1st tax)?

I'm getting somewhere with multiple taxes, but will avoid compound taxes if no-one needs them (which I have a horrible feeling someone will...)

See the post above yours regarding compound taxes in Quebec, Canada.

 

[glricht]

In Florida, there is a state-mandated sales tax of 6%. Each county can add their own (my county is 1%). There are also some cities and tax districts that can add their own too.

Hardware/software is always taxable. If the only thing on the invoice is services/labor, no tax has to be paid. However, if the invoice includes services/labor AND hardware/software, then the entire invoice amount is taxable. (Other states have different rules on what's taxable and what's not.)

Sigh ...

 

[coco3_man]

... if the invoice includes services/labor AND hardware/software, then the entire invoice amount is taxable...

Use separate invoices then...

Tom

 

[mkeathley]

I assume you cry yourself to sleep at night? I know I would if I had to deal with that on a daily basis

Do you need to apply different taxes depending on where your customer is, or is it based on where your business is? Just trying to get my head around it...

That should be easy enough to do - reporting is simple I would need to add a 'county' field for each customer... I shall mull that one over.

I was considering an option to have tax-free customers, and of course taxed/non-taxed products (the inventory system is a little ways off yet).

Sometimes I cry, yes, LOL
Some states want me to pay every month, and some every year.

I apply the sales tax based on where the receipt of item or service is. 85% of the time its at my shop in Texarkana, Miller County, Arkansas.

However I have some customer who may bring stuff in shop, or I may do onsite work at their Texarkana, Bowie County, Texas office, or at their Idabel, McCurtain County, Oklahoma office.

So I need a "default" tax rate and to be able to select different tax rates when I make the invoice. And of course the option for no sales tax for non-profits.

But no reason for you to keep up with all the tax rates. They change all the time. The state sends me a update letter if any rates in my area change. The way I do it in QuickBooks is I can setup multiple tax rates and name them like "Texarkana, Ar Sales Tax 10.00%" and etc. It defaults to that one, and I can select the others when I make the invoice if I need.

Also I don't need to put in the County rates. I pay the state and the state pays the county. But I do have to tell the state what part came from what county. Just allowing me to name my own tax rates and see those names on a sales tax report would work out just fine.

 

[glricht]

Use separate invoices then...

Tom

That was my first reaction too when I first came across it. But in the state's FAQ's, this scenario is specifically addressed. Bottom line: you can't get around the sales tax by using multiple invoices.

Could I get away with it? Probably. But I don't even want to think about the problems (and owed money) I'd be facing if I ever got audited. Penalties and interest-owed would likely put me out of business.

 

[TmouR]

In Greece there is a 23% VAT (parts,labor,services).
There also a 16% VAT for some remote places.

 

[Robert]

Sometimes I cry, yes, LOL
Some states want me to pay every month, and some every year.

I apply the sales tax based on where the receipt of item or service is. 85% of the time its at my shop in Texarkana, Miller County, Arkansas.

However I have some customer who may bring stuff in shop, or I may do onsite work at their Texarkana, Bowie County, Texas office, or at their Idabel, McCurtain County, Oklahoma office.

So I need a "default" tax rate and to be able to select different tax rates when I make the invoice. And of course the option for no sales tax for non-profits.

That shouldn't be too hard.

But no reason for you to keep up with all the tax rates. They change all the time. The state sends me a update letter if any rates in my area change. The way I do it in QuickBooks is I can setup multiple tax rates and name them like "Texarkana, Ar Sales Tax 10.00%" and etc. It defaults to that one, and I can select the others when I make the invoice if I need.

Of course I won't be hard-coding any tax rates, just trying to make sure I cover as many bases as possible for the calculations.

Also I don't need to put in the County rates. I pay the state and the state pays the county. But I do have to tell the state what part came from what county. Just allowing me to name my own tax rates and see those names on a sales tax report would work out just fine.

Easy